Approvals for vehicle-lease transfers continue to remain on a steady track.
On Wednesday, Swapalease.com reported that vehicle lease credit applicants registered a 68.4-percent approval rate in June, up slightly from the 67.9-percent mark registered in May.
Even though lease origination activity at dealerships has been down slightly in 2018, site officials have noticed lease takeover activity has remained healthy, with many shoppers taking advantage of shorter, customizable terms offered on the secondary market.
Swapalease.com pointed out that benefits of lease takeover can be extremely budget friendly, with interested shoppers avoiding the down payment typically required at the dealership — this has already been covered by the initial lessee — and the ability to make a shorter commitment on the lease contract.
With the economy still relatively strong, Swapalease.com has experienced more stability in its lease approval rates since the beginning of the year. Since February, the lease credit approval rate hasn’t dipped below 65 percent, illustrating a normal and healthy approval range.
“We’re seeing a few more applicants with quality credit to take over leases in the marketplace, most likely as a result of higher lease costs at the dealership,” said Scot Hall, executive vice president of Swapalease.com.
“An additional benefit of taking over an existing lease is that the buyer is insulated from economic changes affecting dealership prices, such as higher interest rates or lower incentives offered at present day,” Hall added.